Apple Tells Suppliers to Cut iPhone XR and XS Production by 10% for Next Three Months

Apple is telling its suppliers to cut production on new iPhones by 10 percent over the course of the next three months, reports Nikkei.

Apple made the request of its suppliers late last month, asking them to produce fewer iPhones for the January-March quarter.


This is the second time that Apple has recently cut down on iPhone production, and Nikkei says Apple made the decision prior to issuing its guidance downgrade last week.

The production revision applies to all of Apple's new iPhone models, including the iPhone XS, XS Max, and XR. "The level of revision is different for each supplier and depends on the product mix they supply," an unnamed source told Nikkei.

A second source said that overall production volume of both new and old iPhones will be reduced by approximately 40 to 43 million units for the January-March quarter, down from an earlier projection of 47 to 48 million units.

Due to weak iPhone sales in China, the effects of the U.S.-China trade war, cheap battery replacements, and other factors, Apple cut its Q1 2019 revenue guidance to $84 billion, down from the $89 to $93 billion guidance issued in November, and with the production cuts, those issues may continue further into the year.

Apple CEO Tim Cook just today said, however, that reports suggesting the iPhone XR is a flop or selling poorly are "bologna," and that the device has been the best selling iPhone every day since it launched.

Related Roundups: iPhone XS, iPhone XR

Top Rated Comments

(View all)
Avatar
23 months ago
Alright, Mr. Cook, here's the "bologna" you requested. Eat up.

Score: 79 Votes (Like | Disagree)
Avatar
23 months ago

Dun dun dun!


What's next on the "What can Tim do next?" show?

$2000 iPhone XIS
Score: 54 Votes (Like | Disagree)
Avatar
23 months ago
I don't think Tim Cook is the right person for an Apple innovational rebound. If you want someone to produce strong financial results and please shareholders? Tim Cook is your guy. If you want someone who can pioneer an iPhone rebound, revitalize Siri, not demonstrate yesteryear Apple hubris, and be bold? Then Tim Cook isn't your guy.

I am not going to say pre-Jobs or post-Jobs arguments here. I am just going to critique Cook's tenure:

iOS 11 and its buggy fiasco, Siri being unshackled up a bit occurred way after the Google Assistant started its major strides, AirPower not even being out, iPad Pro and iPhone bending, lack of innovations w/ the iOS beyond being a touchscreen based environment, stagnant Mac products, etc.

I think Apple needs to understand that its "differentiation" is not going to work on branding alone. When you can get better features, good enough software, and more value from your purchases at a fraction of the price? You're probably leaning towards the more affordable product.

China is the most populous nation on the planet. Apple can still appease and entice their customers without resorting to Moto G pricing and products. To disrupt a mature market? It requires bold thinking and risk taking.

You have a processor capable of powering a laptop, but you have the OS that has UI elements since iOS 7 and the functionality of generations old Android software. Why, why, why?
Score: 37 Votes (Like | Disagree)
Avatar
23 months ago

Cutting production after the holiday shopping season is something the Apple has done every single year. It is neither surprising nor unexpected. Not sure why this appears to be some new strategy by Apple.

This isn't talking about scheduled production cuts. This report is saying an additional 10% cut more than was already planned.
Score: 37 Votes (Like | Disagree)
Avatar
23 months ago
Tim's strategy is to keep raising prices to offset losses. Brilliant idea.....
Score: 30 Votes (Like | Disagree)
Avatar
23 months ago
Must be because they’re selling so well, right Tim?
Score: 26 Votes (Like | Disagree)

Top Stories

Leaker: 'iPhone 12 mini' and iPhone 12 Storage Capacities Start at 64GB, Pro Models at 128GB

Tuesday September 29, 2020 2:31 am PDT by
Rumors suggest Apple's iPhone 12 launch event will be held on October 13, with the more affordable 5.4 and 6.1-inch devices set to ship out ahead of the more expensive 6.1-inch and 6.7-inch Pro devices, and this morning hit-and-miss leaker Jon Prosser has further committed to that date by providing alleged details on Apple's first shipment of finalized iPhone 12 units. Prosser claims the...

Hands-On With iOS 14.2's New Shazam Music Recognition Toggle in Control Center

Monday September 28, 2020 2:35 pm PDT by
Shortly after launching iOS 14, Apple introduced an upcoming iOS 14.2 update, which is now available to developers and public beta testers ahead of a public release that could come at some point in October. Subscribe to the MacRumors YouTube channel for more videos. The iOS 14.2 update mainly focuses on the Control Center, introducing a new Music Recognition toggle that deepens the Shazam...

Top Stories: iOS 14 Feature Tour, 'iPhone 12 mini' Rumors, Apple Watch Band Controversy

Saturday September 26, 2020 6:00 am PDT by
Things started to calm down a bit this week following last week's rush of media event, Apple Watch and iPad launches, and the release of iOS 14 and other operating updates. But that doesn't mean there wasn't still a lot of news, from digging deeper into iOS 14 to more iPhone 12 rumors to the uproar over trying to exchange band sizes on the new Apple Watch. On top of all of that, we heard...

DigiTimes: 12.9-inch Mini-LED iPad Pro Arriving Early 2021, Mini-LED MacBook Coming Later

Tuesday September 29, 2020 4:18 am PDT by
Apple will launch a 12.9-inch mini LED-backlit iPad Pro in early 2021 and a mini LED-backlit MacBook in the second-half of next year, according to DigiTimes. The Taiwan-based industry publication claims Epistar will supply the over-10,000 mini LEDs used in each iPad Pro tablet. Meanwhile, Apple is expected to recruit Osram Opto as another supplier of mini LEDs for use in a new "high-end"...

iPhone 12 May Launch Earlier Than Usual in South Korea

Monday September 28, 2020 5:24 am PDT by
The upcoming iPhone 12 lineup may launch earlier than usual in South Korea, reports The Korea Herald. South Korean telecoms firms speaking to The Korea Herald have said that the iPhone 12 lineup will launch ahead of its usual schedule. Normally, the release of new iPhones in South Korea comes about one month after launch in the United States. Last year, the iPhone 11 arrived in South Korea ...

iOS 14: 'Phoenix 2' Space Shooter Delivers Playable Demo via App Clips

Saturday September 26, 2020 2:08 pm PDT by
One of the new features that arrived in iOS 14 is called App Clips. App Clips is described by Apple to be a "small part of your app" that can be available to users at just the right moment.App Clips focus on finishing one task quickly. An ideal App Clip experience allows users to open and complete a task in seconds. Instead of requiring an App Store download, they can be loaded and run via...

Epic Games Unlikely to Win Injunction in Ongoing Fortnite Battle With Apple, Jury Trial Possible

Monday September 28, 2020 1:14 pm PDT by
The ongoing legal dispute between Apple and Epic Games continued on today, with a preliminary injunction hearing taking place this morning. We're still waiting to hear the judge's official ruling, but it looks like Epic is not going to be granted an injunction to allow Fortnite back into the App Store as the case unfolds. Many of the arguments that lawyers for Apple and Epic Games made were...

iPhone 12 Production Lines at Foxconn's Zhengzhou Factory in China Running '24 Hours a Day'

Tuesday September 29, 2020 3:38 am PDT by
Apple contract manufacturer Foxconn is running its massive Zhengzhou factory in China 24 hours a day to produce the new iPhone 12, according to Chinese media reports. Apple's main iPhone manufacturer in China is said to be cancelling workers' holidays and introducing mandatory overtime with additional bonuses for longer-serving staff, according to information garnered from employees,...

'iPhone 12 mini' Name Reappears in Leaked Apple iPhone 12 Case Stickers

Friday September 25, 2020 1:58 am PDT by
Earlier this week a proven leaker claimed that the iPhone 12 lineup would be named "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max," and today the same nomenclature has appeared again in a photo depicting alleged stickers from unreleased Silicone iPhone cases originating from Apple's international distribution center in Ireland. The photo shows three stickers with the...

Apple Releases iOS 14.0.1 With Fix for Bug That Resets Default Apps After Rebooting

Thursday September 24, 2020 10:12 am PDT by
Apple today released iOS 14.0.1, the first update to the iOS 14 operating system that was released on September 16. Today's update is a bug fix update addressing issues that weren't able to be fixed in the initial iOS 14 launch. The iOS 14.0.1 update is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. ...